Frequently Asked Questions

【Koshida Accounting Firm Column Date:

Can I operate my U.S. LLC while living in Japan?

Yes. However, if you manage your U.S. LLC while living in Japan, you need to consider both U.S. and Japanese tax rules. Depending on your circumstances, your LLC could create a Permanent Establishment (PE) in Japan, distributions may be taxed differently from the United States, and non-permanent residents may also need to consider Japan’s remittance taxation rules.

These are important issues in international tax and accounting in Japan, and the treatment depends on your business structure, activities in Japan, and tax residency status. Obtaining professional advice before moving to Japan or starting operations is highly recommended.

For more details, please refer to our blog, Tax Issues for U.S. LLC Owners Living in Japan (Permanent Establishment & Remittance Taxation Explained)